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China 36, Cyprus 35, U.s. 21, Us 18, Italy 8, Nicole 8, Spain 8, California 7, Samsung 6, United States 6, Steve Cohen 6, Jon Huntsman 5, Nicole Petallides 5, Russell 5, Chicago 5, New York City 5, Beijing 5, Europe 5, Jack Lew 5, Advair 4,
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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    March 19, 2013
    1:00 - 3:00pm EDT  

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melissa: welcome. i'm melissa francis. lori: i'm lori i i rothman. voting to delay a tax on the bailout, and now there's reports the finance minister is stepping down. we have reaction with the trading president, the former cypress trade representative to the u.s.. he'll be joining us. >> treasury secretary jack lew meeting with the chinese president on the agenda of growing concerns about china
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ease role in cyber attacks. melissa: targeting seg represents in new york a week after a judge rejected the ban on large drinks. we get the verdict with the judge andrew going after soda, ear buds, cigarettes, what's next? seriously. lori: only can guess. it is back down to the floor, new hour here on "markets now," and i know cypress is driving action again today. >> it is. we are seeing headlines that the president will be talking with angela merkel, obviously, another development pertaining to what we see in cypress, which then, obviously, really rules the e.u. markets and our markets here at home. yesterday, for example, we lost a lot of money in the global market with all the concern about what's going on in cypress. we also had a strong dollar, and that, too, pressured things around here. just concerned about con that
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ons, and some more nervousness entered back into the market. we are seeing the dow down 40 points now after having been higher by about 60 points. we are seeing the names that are weighing on the dow. things like caterpillar, disney, also alcoa, american express, and jpmorgan among the biggest laggards. the drug index is a glimpse of hope on the big board, and, of course, transportation index with the truckers, shippers, and airlines in the reds. the airlines hit 52-week highs, ands transportation index itself is lower. back to you. >> we're looking at three down days. oil on track to snap a three days of gains losses on the uncertainty over the vote in cypress. phil flip in the pits. how is the trade going today? >> you know, i'll tell you, traders are nervous about cypress, again. they wanted to sweep it under
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the rug and forget about it, but the markets will not let them. the oil market, higher on the day at one point early this morning. this market is now down close to 77 cents. we're seeing a drop in the products whether it be rbop or gasoline. this reminds me. greece situation when it started to evolve. everybody said it was not a big deal, but then, of course, deflation fears kicked in. for people who think it's going away overnight, we'll deal with this, it's coming like a plague every day. the other thing, of course, natural gas markets on fire today. again, because of the cold temperatures anticipation of a draw down of supply, but, also, it's a risk adverse play. oil goes down, natural gas goes up. that's the worry about cypress. >> we agree with you with the analogy. thanks so much. >> thank you so much.
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>> markets in the red as cypress governs pushing the vote on a bailout by another day, and the next guest says it's no agree. this is an isolated incident in a country so small with a very small limited economic output it went have an impact. joining us now is paul, president of heritage capital, and, paul, great to have you on the program. i know you heard phil's report on how the commodities markets react, and, yesterday, it seemed like investors were nervous, then calm, and, perhaps today they are nervous because maybe it's not just an isolated incident. maybe there will be a ripple effect more than anticipated. is it time? can you put it in the rearview mirror? >> we heard from the -- the last couple years, whatever it takes, they save the euro. whatever it takes. they are not going to have to load a revolver to save cypress,
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if they even want to. i think cypress is a one often. there's a lot of air in the markets. up roughly 10% on the year in equity, so, of course, any possible reason to pull some profits off the table, people are going to do that. >> right, right, and i think you hit the nail on the head. any little reason at all. we had a run on the dow, and now three days of losses. could this just be like an excuse to run for the exits? where do you think we are in the equity market cycle? >> well, i don't think anyone's running for the exits. sunday night, the futures were down significantly, looking at a 200 to 300 point decline sunday night to monday morning. it deny materialize. so many people on the outside wish they were in waiting for pull back. you have pull back, and three days down, waiting for someone to say, well, that was a correction. off to the races again. we are closer than anything else in the rally, and it's from the
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november lows, in straight line fashion, lairly got more than three days town. i would never throw new money into a market with this much air underneath it, this much rally in the rearview mirror. >> okay. >> even if we're beginning to 15,000 or 16,000, there's going to be some kind of pause first. >> i'm sorry to interpret you, but i have to address the viewers 20 breaking news. the cypress house speaker is saying that a vote on the bank deposits, whether or not to tax them, will go ahead. let's watch the markets here in the u.s. very carefully for any kind of reaction. the dow is down 44 points, 14407. paul, i apologize for interrupting, but that was a very important bit of breaking news. so let me get your take on how to invest know around the level on the dow. you said no new money right now. >> right, for my money, if you're -- if it's burning a hole
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in your pocket, i think you've got to be careful. you must, must, must dance close to the door, so if you had to put money to work, i definitely would be conservative, would not be on the risk on, high beta plays. that's crazy. for me, if we have -- if the fed comes out tomorrow with anything hard to believe, i would be celebrating into a fed pop. i would not hop on the band way gone. we're close to the end. i'll say this, people talked about the bond boom market for a decade. >> they sure have. >> rumors have been greatly exaggerated, bonds down, and sure, they could go down more, but i think what we're coming closer, the bonds are second half of the year play, already the middle of march, and we're not that far away from what i think is a tradeable and decent rally in the bond market. >> yeah, we see people running to the safety of u.s. government debt with any kind of rattling anywhere in the world. paul, we have to leave it there
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for time. >> thanks. >> great to have you as a guest. >> good seeing you. >> we want to bring you breaking news from the partials at the "wall street journal," and federal regulators investigating microsoft's relationship with business partners that allegedly bribed foreign government officials in exchange for software contacts. they say the justice department and fcc examining bribery claims in china, romania, and italy according to the sources, and we should note that a microsoft internal probe found no evidence of wrong doing in china, but there's an investigation going on now. the stock flat on the day. we'll see how it is impacted as markets digest the news. cybersecurity, a main topic of discussion as jack lew spoke with the new chinese president in beijing. peter barnes in washington, d.c. with more on this story. peter in >> hey, melissa, that's right. last month, a private security firm tied the chinese military
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to sib attacks on more than 140 # u.s. companies. that is at the top of the agenda at these meetings in beijing. analysts described them as a get ascwaipted session to set the table for this on future issues between the two countries. the treasury official says, quote, it was a warm and wide ranging discussion, and they were candid and direct in the comments saying lew and they talked about including cypress and property and north korea. >> we're in step one of deciding what to do with this government, and it's great that they started the process early, but we have to consider that one of the possibilities is that we can't work with them. we couldn't work with the last ones. >> china denied it is behind the cyber attacks encysts it's a victim to. the u.s. and china hold the next round of strategic rounds of
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talks in june. >> interesting. thanks so much. huge win for anyone in the resale market, the supreme court's decision that impacts everything from e bay to thrift stores. >> we want to hear about that and e retirement crisis. workers saving far too late money. bail them out too? >> new york city mayor on a health crusade. >> and is nothing off limits? >> wow, smoking, soda, listening to music. the plan to crack down on cig -- cigarettes ahead. ♪ all stations come over to mission a for a final go.
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this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is caured. is connecting today's leading companies to places beyond it. siemens. answers.
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you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. >> every day at this time, charles payne joins us with tips to make you money, and, well, you guys could use advice.
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there's a record percentage of american workers worried they won't be able to afford retirement, and 30% have zero confidence they'll have enough cash to retire comfortably. we are living longer. large chunk of people surveyed routersedly have little or no retirement savings, and of those saves, nearly 60% of employees reported having less than 25,000 in total household savings in investments excluding the home. charles, this is what you call the country a dropout? >> in part, we have the people who sort of have given up, you know, a lot of us -- a lot of people live day-to-day, you know, hand them out, if you will, but people decide, you know, it's just better to live this way, belter to maybe just get a tattoo rather than put in $300 in the bank or better to get an iphone, $600 on iphone than $500 in a bank. >> or buy a big house you don't
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need and have a huge mortgage rather than putting the check away in a 401(k) and saving it. >> it's not any, guys. there was a survey i thought was interesting from 2001-2010, and it talked both the most important reasons for families to save, and there were dramatic declines in the reasons for saving for education, dramatic decline in buying a house, a dramatic decline in a retirement. what went up, liquidity, people wanted to be liquid, you know, and i think some of that was just fear for our or patly fear, and saving for a purchase. that had a dramatic one. i'll save money for two or three weeks if i try to get the boots that i really want, but they are not saving long term, and, to me, that means we live in the moment. >> worst to do is leave your children after you passed with high debt. you don't want to do that. >> well, no, it's worse than that. you run out of money, too, for your actual living expenses. we used to live in a society where we with more pension, where you could count on social security where you were dying at an earlier age.
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we live long. you mentioned that. where you had a pension at work and the value of the house went up. our parent's generation, you bought a house, paid it off, and when they retired, sold it, realized the equity, bought something cheaper, and lived off that money. now almost all those things are gone. you either have to continue to work or that sandwich generation pays for everything, pays for the kids and pays for the grandparents. >> yeah, but unfortunately, what happens after that? >> does that have to do with the fact rates are low? there's no real -- nothing -- >> i don't think so because with respect to, like, the stock market, and we came out of two bubbles that to melissa's point that blew away two things. the money in the stock market, an and now there's people who are saying, well, i don't believe anymore. it is interesting, december, the savings rates spiked to 6.4%, and that was really, it was an amazing spike, huge in a long time, but came back to 2% in january. by the way, the last time we had
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double.coms over 10% savings rates in the country, may of 1985. this has been happening over a very long period of time, and we had the chance mark, and now i think we completely lost it all, kind of forgotten about it, but you make the point if you live to be 65, and no one wants to sit around hoping that -- hoping that social security check makes it to them, that used printed up dollars and worth less than what it's worth. this is dramatic stuff. i'm sure 80% of people watching the show now can relate to it. they've been hemming, hawing, and, you know, worried about it, and, you know, there's only something out there. today, you know, cypress, take ing your money, there's a >> the consumer protection board here talks about, like, taking control of 401(k)s to protect us from fraud, when, really, it's a way that nationalizes our retirement savings.
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that's another issue. >> it is. >> requires another segment. >> i know to derail president bush's second term right away, but the idea of money and strong stocks like the dow 30, the dow's at all-time highs right now. would not have collapsed because it would have been a strong hands, and i think people have to think like that, you know, the money's not going to be there otherwise. >> all right. >> thank you, charles. >> you guys got it. >> you're the best. >> checking the markets, nicole is on the floor of the new york stock exchange, and, nicole, home builders. >> we got in good news in housing starts, and today in building permits as well. the dow sells off, we watch the move, and the exchange trades fund in particular, the spider home builders, and they hit 52 week highs. the ishares of u.s. home construction also running a chart there for you to look at, but when you see the numbers that came in today, in the month of february, a gain of .8%, that's the highest level in nearly five years, and we are seeing these. that's a nice long chart for
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you, you see the gains there in the group. back to you. >>ny -- nicole, thank you. hide the smokes. stamping out young people from smoking where stores can and cannot put cigarettes. >> from new york to california, where the state takes money, they originally gave small business tax owners a tax break. ♪ i'm a conservative investor. but that doesn'mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs.
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>> the dow right now at session lows awaiting word on the cypress bailout vote. you can see down 65 points on the day, about a half percentage point. >> it was back up -- sorry, i was going to pipe in there. >> retroactive tax increase on small business owners that has many in the golden state outraged. william is in los angeles with the latest. i bet they are outraged, william. >> well, melissa, imagine, trying to come up with a hundred thousand dollars next week because of tax return you filed five years ago, legally, on time, and in full. well, that's what california's demanding of some taxpayers who
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basically followed the law and are now being treated as outlaws. >> this notice was the first. >> to brian overstreet, a punch in the gut, compliments of california, a six figure bill for back taxes. >> it's outrageous, not just a five year look back, but interest on money that you didn't know you owed. >> overstreet and hundreds like him got a letter from the state telling him due to a court ruling, a 50% tax break for small business and startup investors was no longer available, and anyone who claimed it in the last five years had to pay up. >> retroactivity is an issue of fairness and credibility for california. >> california's tax leaders say what the state is doing is unfair, overreacting, and overreaching, hoping to claw back some $120 million for cash strapped california. >> the problem right now we have is what's the revenue identified, those folks up in sacramento will spend it already. >> probusiness lawmakers trying
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to resend the letter fearing high-tech investor who build the state's venture capital economy will flea to lower tax states. >> we have the right to change the rules op you after the fact, and that's what's nos fair. >> some in sacramento are trying to unwind this. california's not cypress, it's not taking, but to many, it is clearly unfair. >> no, it is. it is so unfair. i mean, changing the rules after the fact is crazy. william thank you for the report. >> you bet. >> well, in the mean time, a huge win if you're one who likes to resell things from ebay to yard sales, and itch ed -- rich edson in washington. rich? >> e bay and overstock.com love the decision. publishers, not so much. the supreme court questioned whether a student could buy cheaper, foreign made and sold textbooks and resell them in the
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united states for profit. copyrights permits sales only overseas, but the courts said no. once americans buy an item, they buy and resell it of the the other decision could have made it difficult to resell foreign items in the u.s.. libraries say the decision is a landmark win for consumers, small businesses, online marketplaces, retailers, and libraries nationwide and the affirmation of you bought it, you own it. scalia and kennedy called it a bold departure, and copyright act at odds with congress to protect those against unauthorized low priced foreign made copies of the copyrighted works. a big win in the supreme court for businesses overing a market for used goods. >> yeah, i got a lot of fox dresses, rich, i could put up
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online. >> i'll let you do that first and maybe i'll do it. >> be curious what they would generate. >> i think you would be in trouble for that. >> they are jenous here, they outfit us well. >> try to dig out of that one. >> i did. i saw your office, racks overflowing with clothes. you're a bigger clothes horse than i am. >> on a new serious note, the dow down 68 points. it looks like in cypress they will vote on the tax. we'll keep you posted on that. exclusive reaction to the news out of cypress with the trading president who is the former cypress trade representative to the u.s.. >> another new york city ban, mayor bloomberg's proposal targeting cigarettes. get the verdict with judge andrew napolitano ahead. ♪
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. ...
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so let's break down this play. charles? uh, charles couldn't me it. his single miles card blacked him out here and here. he should have used... the capital one venture card. he's coming to us from home. hey fellas... hey baby, you want mama to iron your undies? nice tightie whities. i didn't know mrs. barkley made quilts. really? looks like a circus tent. is that the best you got? now if you put this, with this, you have a sailboat. what's in your wallet?
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lori: time for a look at the markets as we do every 15 minutes. another edition of markets now. here you go. we're down across the board with the dow off 62 points, just shy of the worst levels of the session. the news behind this, we're hearing from cyprus they will in fact do a vote on the tax grab we're talking about this week. we'll keep you posted on that. meantime back to the floor of the new york stock exchange and nicole petallides who has an exclusive interview cyprus's former trade representative to the u.s. nicole. >> i'm here with the former trade representative of the united states. and also cyprus chamber of commerce vice chairman. you were president at one
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time and president of equs trading. i want to talk about cyprus. the vote which may be delayed until tomorrow looks like it was going to happen today. what are your thoughts on the vote today? >> from what i understand, we've taken sort of a thumbprint what is going on, the vote will not go through. the major parties, which is the presidential party is going to abstain. the other parties are going to vote no. >> rejected all across the board? what does that mean in the end? >> you have to look at the big picture. cyprus, needing a bailout of 17 billion. applies to a troika. the troika comes back with a program that says we'll give you ten billion but the other money, the other 5.8 billion has to come from deposit terse. >> right. >> they were going to take money from depositers. you see what happens when that word gets out. it was announced on saturday. on monday world markets lost 500 billion in equities. >> so that's the point right there, is that while cyprus is just .2% of europe's gdp,
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it is a global issue? >> absolutely. spain and italy are watching closely. if troika is allowed to push through a program, this is not a standard program. >> right. >> they just decided to do it. unfathommed something should go through like this. >> let's talk about russia. we're hearing plane tickets to russia from cyprus are sold out. why, and what does it mean for the global markets overall as well? >> look at it in the micro sense. first of all they're sold out because the russians will take owl of their money out of cyprus. there is going to be a bank panic. that's what i'm speculating now. if that happens that may cause contagion and spain, italy and the whole eurozone. what does that mean for the u.s.? a downward trend overall in world markets. >> you said russia might buy some banks of the cyprus to save the day. >> hour finance minister is there now. he is trying to negotiate a
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deal. if they buy the two ailing banks that would solve the problem. >> you said the minister of finance is out once he returns to cyprus. cyprus may have to exit the e.u. what does that mean for the whole eurozone? first of countries to do so? >> if there is no alternative plan, if troika doesn't give us money we'll have to exit the eurozone and our economy will collapse and that is what we try to avoid. that's where we stand. >> you talked about the people are frighten and angry and protesting. dennis's parents were born in cyprus. my parents were born in cyprus's as well. we'll follow this issue is really not about cyprus but about the whole globe as well. >> obviously. that's the whole point. >> thank you, dennis. >> thank you, nicole. >> a key issue and we'll follow the russian story as well. lori: thank you, nicole, for sharing your story. didn't know your folks are from cyprus. melissa: since his election in 2002, the new york city mayor michael bloomberg has
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initiated a number of health proposals. now he is proposing to ban cigarettes from being displayed in his stores. they're hiding cigarettes. is that going to prevent people from smoking or is this another instance of mayor bloomberg's big government meddling? let's get the verdict from judge napolitano. andrew napolitano. >> i'm chuckling a little bit. this follows nicely from nicole's wonderful interview with the trade representative from cyprus. the same mentality it can just steal 10% of what you have in your bank account, thinks it can tell you how to live and take care of your body rather let you have free choices. melissa: you say this is freedom of speech issue. how where cigarettes are displayed about speech? >> great question. the supreme court held that commercial speech, speech that invites a commercial transaction, i have this watch here for sale, how much will you give me for it, example of commercial speech is protected speech. if you're selling a law full product you havv the right
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to advertise that product in a reasonable way. emphasis reasonable. the product is harmful. the watch is not harmful but tobacco is harmful. so the federal government has limited and regulated tobacco advertisements. it regulated them so much it is excluded all other governments from participating in --. melissa: federal? >> correct. from participating in that regulation. it has, here's the technical phrase, lori, preempted the field. it has said to the states and to the municipal corporations in the states, new york city is one, you can't regulate tobacco advertising. only we shall. that's why we all see that surgeon general's warning. the size of the print is regulated and space between the letters is regulated. follow those regulations, and you can advertise the tobacco product. no state can interfere the in comes the mayor of new york. we don't like the federal regulations. they're not severe enough for us. we'll make you take this lawful product and hide it under the shelf. well who, trying to sell a
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product would want to hide it under the shelf? and if you know it's under the shelf, aren't you going to ask for the product anyway? what is the mayor gaining? nothing. except interfering with the freedom of speech of the seller. i amter fearing with the federal government's scheme for regulating the advertising. and in a grand scheme scheme because this is such a concentrated market here in new york city, interfering with interstate many could mers, the free flow of tobacco products in and out of new york city. he can't do any of those things before he is stopped by a federal judge. melissa: it's amazing because this is a laundry list of things he has wanted to do. he tried to ban the giant sodas which didn't make logical sense because you could buy two. buy them some places, not others. it was random. that was one of the main problems. he is trying to regulate or at very least recommend how loud your ear buds or how loud you can play the music in your own ears. he has a war on salt going.
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>> he has police stopping people on the basis of their physical appearance and frisking them, known locally as stop and frisk. that case is being challenged and tried before a federal judge in lower manhattan even as we speak. of course the constitution prohibits that. so you really have a mayor who thinks his judgment can trump the constitution, can trump federal law, and can trump the personal judgements and choices we make about our own bodies. melissa: ourselves. not harming others but ourselves. that is war on our freedom. >> correct. i think he will lose on all of these counts. look, he is decent, intelligent, well-intended person but has a very, very poor appreciation of human freedom because he thinks he can trump it and use the power of the government to do so. melissa: thanks judge napolitano for setting us straight. >> always a pleasure. lori: thanks for the conversation. the insider scoop on crackdown on insider trading. charlie gasparino is next.
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melissa: he scammed investors out of more than $216 million but bidders can get a piece of russell wasendorf's empire. we're live live at action straight ahead. lori: showing you where interest rates are at. big look into u.s. government debt. 1.89% yield. similar story for the 30-year. off seven basis points, yielding 3.11%. we're back after this. ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightfoard guidance and be ae to focus on other things, like each other, which isn't rocket science.
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it's just common sense. from td ameritrade.
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>> good afternoon, i'm sandra smith with your fox business brief. the world's largest money manager blackrock, planning to say off nearly 300 employees. the memo came by reuters. blackrock's president said despite the layoffs the company will continue hiring and expects to end the year with more employees than it currently has. blackrock shares jumped nearly 50% in the past three months. more homeowners bouncing back from underwater mortgages in the fourth quarter thanks to rising home prices according to corelogic. the housing market is improving from the combination of fewer foreclosures, tighter supply and higher prices. burger king's new burger it is a real turkey the fast-food chain offering a turkey burger for the first time this week. burger king says the demand if strong enough the turk can he burger will be added
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to the menu. that's latest from fox business, giving you the power to prosper
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lori: according to fox business senior correspondent charlie gasparino the insider trading investigation known as perfect hedge was supposed to be winding down despite high-profile cases against matthew martoma and possibly steve cohen but that may not be the case. here's charlie. >> kind of interesting what we at the fox business network has learned from sources close to the government investigation to insider trading that a slew, that is how it has been described as, a slew of new cases are likely to come and i think they're coming from the civil side. so this is an. sec investigation, these are sec cases, coming in the next couple weeks involving inside trading. we don't have names. we don't have people. we do know one thing. what we've been told is that this does not involve sac capital and steve cohen. that regulators still have a very tough time making a
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case against the sac chairman, ceo and the company as you know just, asac just settled a case, sac settled the case with the sec recently. but here's what we do know. more cases are on the way. as i've been reporting in the past this destination was supposed to be sort of winding down but they do have more cases in the pipeline and we're supposed to see those cases. they don't involve sac. they don't involve cohen but we're supposed to see cases in the coming week. update people on the matthew martoma case, this is fascinating stuff. it sells you why it is so difficult to turn the case against matthew martoma. indicted for trading on inside information on elan and wyeth stocks. had an ex-pet network, sid gilman give him information on drug trials the stock is trading off of before the public. he had a conversation as you know with steve cohen. that is part of the case. that is why cohen is being
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investigated where he disclosed something to him during that conversation. it was a 20 minute call. cohen told him nothing more than what was happening with the stock. what is interesting, you look at some e-mails, those e-mails describe how their conversation goes. what they say, what regulators say, one of the hard things about dealing with steve cohen he doesn't exactly speak in regular english. when he talks to his portfolio managers like mr. martoma, he is talking about conviction level. from what i understand in one of these e-mails mart,000 martoma had a very high conviction level, a level nine conviction level. usually at sac ranges from 1 to 10. that is about as far as they got in terms of evidence how steve cohen knew that this trade that matthew martoma told him to engage in, essentially selling all the elon and wyeth stock, $700
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million worth of stock they sold and went short in positions because they knew this drug developed between elon and wyeth was not working out. it was an anti-alzheimer's drug. they knew before the public because sid gilman was involved in the trials. they they reversed that. why did they reverse it? everybody was saying, stove cohen in order to blow out $700 million of worth of stock would have to know something pressing. what i understand he knew based on the e-mails that martoma had a level nine conviction. can you charge someone with insider trading for a level nine conviction? they don't think so. that's, that's why this case is very hard to make against steve cohen. lori: charlie gasparino, thank you. charlie breaks it. melissa: as we do every 15 minutes. let's check the markets with nicole petallides on floor of the no,. you're watching -- of the new york stock exchange. you're talking about lululemon. >> everything they make is expensive and good and
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regardless how expensive they are they had a problem that the pants are sheer. while they said they had the same manufacturer and same fabric the problem is they will have a pants shortage. they will be replacing pants of those who are complaining. the stock is down about 5%. this is going to cut both their sales going forward and their growth estimates going forward. so as you see there, it says it will have significant impact on their results. back to you. melissa: nicole, thanks so much. lori: russell wasendorf,, sr. bilked investors out of $200 million. it was a 20-year scheme run through pfg business. some of the most valuable items today are up for auction in in an attempt to recover some of the money. jeff flock is in chicago at the offices with a preview what we'll find in the auction. i can only imagine, jeff. >> i don't think we'll ever get to the point where we get the money all back. you see a sea of computers here. there are flat screen monitors. everything from, funny, this
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actually over here, this actually was a monitor that controlled access to this office. russell wasendorf, all the books that he wrote, all about commodities. all about options. complete guide to single stock futures. wasendorf was huge, but he was doing it with somebody else's money. we have charlie. charlie, come with me, i want to go into russell wasendorf, jr.'s office. we showed senior's office before. all of this you're auctioning. perigrine financial, maybe lori can see, that was their symbol. a lot of interest in this stuff. >> yeah. we've had a lot of interest. all done online and registrations are coming in. people are already bidding. >> give me the website so people can go if they want to bid. >> auction is conducted by loeb or go to proxy bid.com which is the bidding portal. >> maybe we put up full screen pictures as we talk of some of the items as i
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come over here. perigrine financial was the name of the company. that is a perigrine falcon they were very much into. old mr. wasendorf receiving award because of all the support for perigrine falcons. amazing how much you can do when you're spending other people's money. trying to get it back as we speak in chicago. lori: what would people bidding for the items do with pictures of wasendorf and the bird? i mean really seems a little bit ridiculous? >> it's legend here in chicago. a piece of chicago lore and legend. lori: 'nough said. >> grows day by day. lori: you are an fbn legend. jeff flock. thank you. melissa: it is march madness now so is your bracket ready? how will you watch all the games? the big business behind the basketball tournament is many coming up next. lori: speaking of winners and losers we take time out here to look at the big board. ♪ .
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lori: march madness getting underway tonight. 6:45 p.m. eastern liberty takes on north carolina at and t. do you have your bracket filled out? you know i'm an expert. the odds of getting outcome of every game correct is 1 in 9.2 quinn trillion. that is 18 zeros. this is one of the most unpredictable college seasons on record. the number one in the
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associated press top 25 changed every five weeks. hopefully you're an expert or nate silver. melissa: with march madness upon us some people may not have time to watch the all 67 games between now and april 8th. thankfully there are plenty of options for sports fans shibani joshi has all the details. >> don't we all know. it is not about getting the brackets right but beating our friend, that's what it's about and winning the fake money pot of course. there is a lot to catch in this year's ncaa tournament. 67 games all kicks off tonight. if you can't get to all the action in front of a television set or working and doing other things, there are a lot more mobile ways to get involved in the game and a new partnership struck up by twitter and the ncaa does something kind of neat. we're already on twitter. while you're tweeting you can watch clips of the videogames. 15 second highlights will e a part of the overall twitter experience. this is brought to you,
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twitter, through an advertising partnership between what was just on the screen which is at&t as well as soak zero. it -- coke zero. this is a good money making way for twitter to expand its reach. you're on twitter any way so we'll expand the experience. melissa: what are other ways fans can keep up? >> if you can't get in front of a television set there were a couple great apps i was able to dig up for you that you shut down load ahead of the big tourney starts tonight. march madness live app. this is the official free app of the tourney. it streams games. you can get highlights, et cetera, et cetera. available on google and the iphone. i like this one, are you watching this? this alerts you when a game gets good. you only want to watch in the fourth quarter when an upset is possible. this will send you a direct message. you can then switch if you're directv, google tv or tivo customer. you can swipe to watch it
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live and move it from the mobile phone to the television set. pretty cool for the non-die-hard fans with no skin in the game like me this year. melissa: interesting. shibani joshi thanks so much. >> thanks. melissa: the rivalry is heatings up between apple and samsung. sources say samsung is developing a new product similar to a wristwatch that will have many capabilities of a smartphone. this news comes just after samsung released its new galaxy s4 smartphone last thursday and just last month, news about apple experimenting with a smart watch of its own surfaced. samsung and apple are the world's two top mobile device companies. both are developing new products as smartphone sales have begun to slow down. you need a smart watch? lori: i can't keep up with all the technology. moving too fast and furious for me. melissa: there you go. tonight on "money", boone pickens will weigh in whether we are losing advantage in natural gas to china. china is opening up natural gas fueling stations for
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transportation, like 50 in the u.s. over next year or so. he will join me 5:00 p.m. eastern on fox business because he said years ago we should use natural gas for transportation. a lot of people thought he was talking his book. but turns out he was absolutely right. >> the white house says treasury secretary jack lew was candid and direct with china's president on issues ranging from cyber attacks to intellectual property. is the u.s. being tough enough on beijing? former china ambassador jon huntsman weighs in next with tracy byrnes and adam shapiro. stick around thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finescomforts abo. we're not simply saluting history...
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we're making it.
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tracy: hey, welcome back. adam: i'm adam shapiro. tracy: i'm tracy byrnes. stocks hitting session lows in the last hour as the world desperately waits on cypress. markets come back a bit. the dow is down 43 points, trading at 14,409. protesters are taking to the streets in cyprus with the
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parliament due to vote on the controversial plan to tax bank deposits. we're going to bring you all the developments ahead. adam: also a high-stakes meeting between treasury secretary jack lew and china's new president. the tone, friendly but was it too friendly in light of china's cyber threat and multiple other conflictss? former ambassador it china and former presidential candidate jon huntsman shares his insight right here coming up. tracy: that is going to be good. apple shares losing a third of their value in six months. at the same time the company's cash stash keeps growing. is it time to buy the stock? we'll talk with a big money fund manager who says yep. but first, top of the hour, stocks were in the red, are in the red today despite better than expected housing data and of course investors worry about contain john from -- contagion cyprus bailout plan or bail-in. adam: bail-in. tracy: we have team coverage, nicole petallides, her
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parents are from cyprus and sandra smith looking at homebuilders. nicole, we'll go down to you first. the dow felt this a little more yesterday than today, didn't it? >> it was interesting. this morning we had green on the screen. we got in good housing numbers, tracy and adam. as we god more headlines from cyprus and the vote which is underway now, shows you worry and contagion fears that exist not only in cyprus and eurozone. that trends over here to the united states of america. you can see the dow is down one-third of 1%, a short time ago we had on dennis, a former cyprus trade representative to the united states, heavily involved. he deals with people who have big deposits there. people who do business there. and he talked about the fact that yesterday, we saw global markets losing $500 billion yesterday was lost. that was just one day. cyprus is so tiny and look how that contagion can so easily spread and how people in europe begin to really doubt and not trust the
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bankers and the government. back to you. tracy: thanks, nicole. we'll see you in 15 minutes. adam: what is happening in cyprus is having impact on stocks but homebuilder stocks are not only ones getting a boost from today's better than expected report on home construction in february. sandra smith has today's trade. >> tracy is wearing red. nicole is wearing red. i'm wearing red. i don't know if that says a lot but there is lot of red on the screen. the home construction number should be good news for the market. we started out on high ground this morning. u.s. home construction rising 917,000 units last month. this is better than expected but lower than higher than 915 that con -- 915 thousand that the economists were looking for. that was not a big beat. case in points some of the big homebuilders, d.r. horton, lennar, toll brothers, some of the stocks are up ten to 30% so far
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this year. i should probably bring up a year-to-date chart of some of the biggest winners. d.r. horton still trading near the highest levels of 2013. another area we're looking at home construction stocks, trex, warehouser, -- weyerhaeuser, bumper company. up a couple percent for weyerhaeuser and home construction etf is too holding onto a gain trading at the highest levels, adam, tracy of the year. back to you guys. adam: sandra smith, thank you. tracy: let's talk about europe because it is rearing its ugly head again. we have concerns over cyprus weighing down our markets but could this actually be a buying opportunity? let's bring in paul christopher, chief international investment strategist as wells fargo advisors. paul, i'm glad you're here with us today. you know yesterday the dow kind of shrugged the cyprus news off. today we're feeling a little bit more impact.
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is it a buying opportunity? >> we think it definitely is a buying opportunity. there is still some uncertainty about how quickly and how soon the cypriots will pass the legislation for the deposit tax but we think that will happen and happen rather soon. as that does happen, you will see prices having pulled back nicely here. we're looking for economic improvement in the second half of this year. we think now's a great time to start getting into some international markets. tracy: why do though with this cyprus story? i mean look, gdp the size of vermont. we're not talking about a big country here at all. is the vacillating the part that is worrying the market? they can't make a decision? >> there are two things. one as you pointed out this vacillation where the government made this promise that it would cut or impose this deposit tax. parliament doesn't sound like it wants to go along with it at all. that has to be resolved, number one. number two, the second problem, the bigger problem is still that contagion risk.
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as you mentioned, your correspondent mention ad few minutes ago. if they can tax depositers, they maybe at some point decide to take some money away from senior bondholders at banks and maybe not in cyprus but in other countries and that is the contagion risk. tracy: do you worry that spain and port fall -- portugal could catch the cyprus cold so to speak? >> no. spain and italy already caught the greek version of that virus and they're still struggling to overcome it but keep in mind that spain and italy both have banking systems that are very different from that in cyprus. in cyprus the assets of the banks are about seven times the size of the overall economy. tax base of the economy is not very large at all. by contrast spain and italy have much larger tax bases. that is where you would go for help if you needed it in spain and italy, you go to the tax base, not to the banks. tracy: that's a good question. last question overseas, if cyprus can't get it together, right now they look like the
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gang that can't shoot straight, and they default and go bankrupt, play that out. what happens here at home? >> well, that's sort of the scenario that investors have been afraid of now for several years and that the europeans have worked hard to try to avoid with greece but a split in the eurozone sets the precedent that if one country can leave, at some point any other country could leave, possibly even germany. tracy: right that. >> would return us possibleryly to the days of last summer and summer before we had large pullbacks and markets around the world including this country. tracy: my birthday is in the summer and i think it coincided. talk about investment opportunities around the world. you have a lot of confidence in the u.k. right now. how come? >> well, we think that the monetary stimulus will eventually give that economy some traction. in the meantime, the currency has really overshot we think to the downside. we look for the currency it improve and for investors to take another look at the u.k. economy as that
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monetary stimulus starts to take evect -- effect. tracy: norway too while we're out in the eurozone area. why norway? >> well, norway is an oil exporter. it has a real sound balance of payments, low debt. we think the currency has been strong. we think it has further room to run. we also like norwegian equities as tactical pick here. tracy: if i'm going to invest into these countries would you do it through an etf or stocks in particular? >> we would go with an etf. the general rule when investing internationally try not to take specific risks where you can. we like countries better than individual equities. we like broader based funds than even individual country funds. the countries i mentioned a few minutes ago, those are short term tactical picks. our base position for an investor in the u.s. is a broadly diversified allocation with half of your allocation in that fund, and then take, use etfs for these individual country
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pick. >> paul christopher, glad you're here on this day. paul christopher with wells fargo. thank you, sir. >> thank you. tracy: he also liked canada, taiwan and south korea. adam: yeah, but we have breaking news on microsoft. shares down slightly. justice department and sec are examining bribery claims business partners china, might have violated u.s. law. we have the statement from microsoft. this is in regard to the "wall street journal" reporting on this here is the statement. we take all allegations brought to our attention seriously and we cooperate fully in any government inqueries. like other large companies with operations around the world we sometimes receive allegations about potential misconduct by employees or business partners. we investigate them fully regardless of the source. we invest heavily in proactive training, monitoring, audits to insure business operations around the world meet the highest legal and ethical standards. this is a quote from john frank, vice president and
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deputy general counsel at microsoft. microsoft shares are trading down slightly today. tracy: sound like a report from general counsel now, doesn't it? adam: you don't expect much, okay. shifting from microsoft to china, big issue there. coming up, former ambassador to china john hunts man. he said -- john units huntsman. said between the twooep united states and beijing. he is the up next. tracy: too many americans are not saving enough and the scary numbers. we have those ahead. but first, let's give a look how oil is trading today. down a little on the cyprus turmoil, down $1.25. $92.49 a barrel. $92.49 a barrel. we'll be right back.
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rain horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. tracy: that time of day to make some money.
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charles payne is here. this hour he is looking at united states natural gas. charles, people say gnat gas is the next big boom this country. >> nat-gas has been the big boom. it was supposed to be hot play couple years ago and it hasn't turned out. it made a stealthy room. it is up big already. i'm not pounding the table on it. it has to be on everyone's radar right now. inventorieses are coming down. drawdown in storage last time we came out with the numbers, 19% year after year. we know one of the things when it got to $2 these guys stopped. they slowed down production. are they happy with $4? we'll see. if we get increase in demand, by the way the weather, the winter that won't go away at least up in the northeast helped as well. this $4 area is very magical. i'm not asking people to jump in right now but if we start to climb above four we might see a whole different shift with respect to natural gas. adam: shell oil two weeks ago talked about building
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new natural gas transport terminals in the great lakes region and also the gulf, does that play into the fact that natural demand will go up for natural gas? >> it does. truly to export it. difference between nat-gas here around nat-gas in japan is amazing. there is tremendous amount of room for gnat gas to go to six bucks here would be 50% move here from now and still be significantly cheaper than parts of the world. tracy: you get partnership interests in nat-gas? >> yes an etf. they buy a lot of futures, nat-gas futures and things like that. tracy: it is the futures. it is not the actual -- >> right, an etf that reflects natural gas. it is about the best way you can really play it. tracy: other than putting a tank in the backyard? >> exactly. if it goes to 6, i might do that. tracy: charles payne, you're great. see you later. adam: see what your money is doing right now. charles, thank you very much. we'll check in with nicole petallides on the floor of the new york stock exchange. nicole, pizza, beer, a good
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combination, right? >> call me lucky. i get to talk about two very nice sectors there, pizza and beer. we're looking at these names in particular today on a day where we mostly red on the screen but when you talk about these names, turns out that it is a winning come nation here on wall street today. papa john's international, boston beer, touching all-time highs today. if you want to move over to red wine, you can consider constellation brands. dent feel left out, right? we have that and leading wine-maker in the world. that too, hit a life-time high today. so we are certainly seeing these names on wall street hitting some new highs. we've also seen some of the dow components hitting some new 52-week highs. the dow is pulling back for its third day in a row of some red. we'll see what happens at the closing bell. back to you. adam: nicole petallides on floor of the new york stock exchange. see you in 15 minutes. tracy: i don't know what that says about society. we're broke, eating pizza and don't know what to do with ourselves so drowning
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our soros in alcohol. adam: we're laid-back. and as they say in spain. don't worry. >> we worry here in the united states. that is our problem. adam: you worry in new jersey. tracy: that is so true. treasury secretary jack lew visiting china amid rising tensions between the two countries. former china ambassador jon huntsman knows all about the delicate dance with china. he is here next. adam: first, here is how the dollar is moving right now. investor. yeah, i'm a serious investor but i'm a busy guy. it used to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i want to know exact how much i'm paying.
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>> at 20 minutes past the hour i'm patti ann browne with your fox news minute. in syria, both are blaming the other after at least 25 people were reportedly killed in a chemical weapons attack in the northern city of aleppo. state media is accusing sirian rebels of firing the chemical rock bet blast the syrian opposition is accusing the government of launching chemical weapons. a mortar exploded during a military training exercise in nevada killing seven marines an injuring at at least seven others. it occurred at the hawthorne army depot. the names of the marines are
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have not been released but they were based in camp lejeune, north carolina. pope francis rode through the popemobile through st. peter's square. he urged protection of the poorest and the environment. he said the role of pope is to quote, open his arms and protect all of humanity. those are the headlines. back now to tracy. tracy: i think he is cool, patti ann browne. thank you. >> thank you, tracy. tracy: we have breaking news of after all the back and forth and facilitating all day, cyprus parliament rejects tax on bank deposits for a international bailout. 36 votes against and 19 abstained. who knows where it will keep going. the story keeps going. adam: waiting for the russians. tracy: exactly. treasury secretary jack lew on a critical mission to china. earlier today he met with china's new president to talk cybersecurity and more. peter barnes in washington
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with details. hey, peter. >> tracy, that's right. cybersecurity is at the top of the agenda the new treasury secretary around the new president of china. just last month the private security firm mandy apt, tied the chinese military to cyber attacks on more than 140 u.s. companies. analysts describe the meetings in beijing as a get acquainted session that will set the table for future negotiations on this and other issues. a treasury official saying quote, it was a warm and wide-ranging discussion but secretary lou was candid and direct in his comments! experts say china risks a backlash if it doesn't stop hacking.% >> it is the american business community is killed by cyber espionage from china. they're the ones that are supposed to be the voices of reason. you take the business community support away from the bilateral relationship you have a lot more possibility for problems. >> china has denied it is behind the cyber attacks and insists it is a victim too.
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the u.s. and china will hold a round of strategic talks in june. back to you guys. tracy: peter barnes, i'm not so sure we want him to be friendly out there but, nevertheless, thank you, sir. >> okay. adam: our next guest knows all about the delicate relationship between the united states and china. joining me now is the former u.s. ambassador to china and 2012 republican presidential candidate, former governor of utah as well, jon huntsman. thanks for joining us, governor. >> pleasure. nice to be with you. adam: thank you. very quickly. is the administration sending the secretary of the treasury, let's bring up issue of cyber attacks. is the right person to be confronting the new president on that issue? >> well the issue is the right one. it needs to be teed up at the highest possible levels. one of the problems this administration has fundamentally is they look a go-to person for china. in the sense that hank paulson, the former treasury secretary under the george w. bush administration was widely recognized as a china
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specialist. he was kind of the go-to person. there isn't a go-to person in this administration so it become as little more confusing. but the cyber issue is exactly the right issue to be teed up. there are two i think ought to be headline issues. one is cyber, to the extent it robs us of our intellectual property and therefore job creation and gdp growth potential but the second issue, and i would be surprised if this wasn't covered in the meeting, is the fundamental need for state-owned enterprise reform within china. the state-owned enterprises have been available to write their own rules for the last ten years under the last administration, and hu jintao and and gotten a way with a lot of bad behavior for a lot of markets to function properly and for americans to have anything resembling a level playing field. those are the two issues. the question becomes you fls, now that you teed i had up, what will the follow-up be and what coalitions will you
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have to make it happen? adam: first, will the chinese respond to the administration. i said had a get that says they only respond to strength and we're not giving them a sign of strength. you bring up reform. premier announced new appointees, in the '90s, commission for restructuring the economy and signal, for lack of a better term, administration in china is serious about economic reform. first, are we giving them a strong signal and second, will we get the reform that's necessary? >> we have a weak hand because our economy is not performing as it should. that dynamic is changing. we have every reason to be optimistic where the economy is going. that adds to strength. that adds to leverage in the negotiating table and terribly needed in u.s.-china discussions. the second part is really about the reform-minded nature of the new players in the central committee and politburo and standing committee of the politburo. china will reform and move toward greater market access
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and dealing with sensitive i issues when they feel they have no choice an can't continue with the status quo. they are getting picture from the united states and their own people. 700 million internet users carrying out conversation before would have landed anybody in a very bad place. adam: latest economic statistics if you believe them the bureau of statistics, they're trying to pop the housing bubble but prices continue to rise in the vast majority of cities. you have foreign direct investment down in january to february, 1.35%. are the reforms coming too slow to prevent what some people worry is going to be, our guest said yesterday, a collapse much china at least of the economy? >> the ballnce sheet has been reasonably strong so far. they have been able to manage inflation, about 2.5, 2.6%. people thought it would be out of control by now. what i would look at right now would be commodity prices and where they go during the first quarter. the nonperforming loans at the banks which could be a lot larger than we fully
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realize, similar to where japan was but maybe not to that extent 25 years ago and so-called underground or black banks which have been --. adam: shadow banking system. >> the shadow banking system. nobody seems to know the extent or the depth or the reach of those institutions, where the nonperforming loans might be as a percentage of gdp. this is really an issue that could trip up the economy in china longer term and needs to be brought out in the open and discussed. adam: governor, very quickly i want to shift gears. we had the rnc with its report over the weekend for opportunity and growth. essentially rebuilding the republican party. you spearheaded long before it was fashionable the call to do this. a quick quote from that report. we have to blow the whistle in corporate malfeasance and attack corporate welfare. we should speak out when a company liquidates itself and executives receive bonuses and rank-and-file workers are left unemployed. is the rnc on a right path and would a restructured republican nominate you as
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presidential candidate in 2016? >> anytime we're talking about freedom, opportunity and a level playing field, whether it is banks that are too big to fail or anything that is too big to fail that ought to be a republican principle. that is the heart and soul of our party traditionally but the republican is not going to succeed, i don't care what the party central does on technology or remany havepping their view of the world. it is about candidates. we either put forward candidates that speak to the heart and soul of american people on republican ideals or not. when we talk red meat, we lose. when we're talking fixes, problem-solving visionary optimistic solution we win. the clock is running. if we don't win in 2016, chances are the republican party is out then until, conceivably 2024. what do you do when you try to talk like you're a governing, viable alternative when the lights have been out for that long? so i would argue we've got to get our act together and get our act together
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quickly. in the end it will really be about the people we field as candidates more than anything else. adam: jon huntsman, former governor of utah, ambassador to china and former presidential candidate. people are hoping you will be a future presidential candidate. a few thumps up behind the cameras. all of the best to you, sir. >> thank you. good to be with you. tracy: all right. we've got to go back to this market now here in the states because stocks have cut their losses just after that cyprus vote we reported. we'll have a live update from the stock exchange next. adam: plus is a cable comeback in the work for industry legend john malone? liz macdonald is on that story next. first, take a look at some of today's winners
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♪ okay. as we just reported. the cypress parliament rejected the bank tax levy, and stocks are happy. working our way back. i want to see them in the green before the end of the day. nicole is with ben willis, hi, you guys. >> hi, tracy. big headlines about what's going on in cypress. they obviously rejected taxing the depositors, but the big picture, it was a lose-lose either way, ultimately, and not only for cypress, but the whole sewer zone, still a wild card now. >> absolutely. i want to hear them stop calling it a tax. they were taking private citizens' funds, citizens of another country, took it whether you like it or not, nothing for it. that said, that was wrong. we knew that. the mart is in a corrective phase. i think that comets. actually, what happened to the u.s. equities, we see a bounce because of the trouble in europe because we're the safe haven
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because of cypress and people taking, we'll take what's ours, that doesn't happen here. we have positive inflows on negative news. >> that's interesting. maybe they are too nervous to go over there. >> absolutely. >> we see that with the u.s. dollar too; right? >> absolutely. that's the first asset that moving on that, and so this becomes the de facto investing platform for anyone in the world. >> all right. thank you, ben. >> you're welcome. >> you can add gold to that as well, another safe haven. tracy: nicole, he's right, tf not a tax. stlowtly right. see you in 15 minutes, you thank him. >> not a business deal that could put money in some pockets. >> robbery. >> not this story, a multibillion cable deal inked between two giants of the industry. it does promise to clang the way we all watch tv, and with more, liz with the bottom line. >> liberty media buying a 27%
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stake in charter. what we hear from the company, is they go on a spree, and this company's going to get bigger charter, could use the cash flow, and liberty bought virgin media, in the process of it in the u.k., but it's all about digital, high speed delivery of content. this is what they like about the deal with charter. he says he's pleased with the growth opportunities, and beyond that, says the company is making a lot of investments in high capacity digital network, digital hd, on demand tv, high speed data, voice, all of that saying this is, of course, the wave of the future because we repeatedly hear disgruntlement among cable's tv. customers who hate losing cable service for a variety of reasons. it's not even the weather. it just goes down. >> yeahings that's true. >> that's the issue. this is the future what he's talking about. of course, liberty buys a stake in the company that supports the biggest u.s. cable operator, but the stake with virgin media, the
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biggest operator in the u.k., liberty has a solid foothold in europe. they got some like 25 million customers over there, so what we're hearing, again, an acquisition spree may be forthcoming between liberty and charter. they'd be using charter's improving cash flow to buy more company. you know, what this means is a shakeup. john malone in the cab space after a 14-year hiatus, and also, there's a board shakeup. he'll take a spot on the board in charter, not seizing control of the company, but you'll see more happening. >> would love to discuss the target of some of the acquisitions. >> that's right. >> that would be great. >> yeah, sure, sure. >> breaking news, oil closing down $1.58, bringing it to $92.16 a barrel. today's loss, 1.7%, snapping three straight days of gains. blame cypress. ready to retire, like, now, you
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mean? i could be ready now. if you don't think you have enough money to enjoy the golden years, you are not alone of the the results of a new survey next. >> and bankrupt pfg best looking to pay back some of the clients auctioning off the office furnishings and more, not auctions off jeff flock, though. >> i'm at the desk, would you like to buy it? would you like his gold plated scotch tape dispenser? they can be yours. i'll explain how when we come back. stay tuned. ♪ [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him,
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and he'll set money aside from his fst day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. you are gonna need a wingman.
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and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. ♪ >> this is your fox business brief, and microsoft is reportedly being investigated for alleged kickbacks to foreign government officials in return for software contracts according to to the "wall street journal," the justice department and fcc are examining bribery claims in china, romania, and italy. microsoft releasing a statement follows the report saying, quote, we take all allegations brought to our attention seriously, and we cooperate fully in any government inquiries. the supreme court threw out a copyright infringement award to the publisher john wiley and sons who tieded with a graduate student to resell cheap textbooks on ebay.
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it's expected to impact goods resold online and at discount stores and even thrift shops. that's the latest from the fox business network giving you the power to prosper. ♪
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>> are you ready to retire, and i don't mean ready to stop working and play golf. do you have enough money saved to enjoy the golden years? if the answer is no, you are not aloin, gerri willis is here with results of a new survey that could shock you. >> hi, this is the study, employee benefit research institute who do this every year, and the numbers this week astonishing coming out for january. 57% of the americans say they have less than 25,000 saved for retirement. that lasts you maybe three months 37 >> -- months. >> wow. >> it's shocking in 2008, 49
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picket -- 49% said the same. it's not the threshold of retirement, but all saving for retirement. >> but is anyone ever truly prepared for retirement? do you ever have enough? >> you never have enough, but you want more than $25,000, and there's another shocking number from the study that i think you guys should have. they asked people if you had to come up with $2,000 right now, could you do it? half the people said no. $2 # ,000. >> that's the emergency fund. >> right. >> that's the emergency funneled, and people say i don't have that at my fingertips right now. i thought that was astonishing that people don't have that amount of money. what happens if the car breaks down? you can't get a babysitter, maybe you're live-in babysitter goes away, what do you do if you can't make represent or lose your job? it was so bad, everyone tapped into everything they had under the sun, maybe they were
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established before the crisis, tap into the fund you got to pay for everything, and now it's a matter of reestablishing it. that could be hard. >> 66% of people believe they are not ready for retirement essentially. the numbers are astonishing, only riding, and, you know, that brings to mind the stock i have over and over again which is you have to take care of yourself. big daddy ain't coming. prepare for your own retirement, kids' retirement, pay for it yourself. that means investing and the stock market. a lot of the viewers are shy of the stock market now, and it may be the only method you have to achieve financial goals. >> the numbers getting worse and worse over the last several years. >> worse than 2008 for sure which is surprising because the meltdown already started in 2008. >> go back 20 years, were people that much better prepared? >> well, now you test me on numbers that i have not lookedded up. >> the point is that we've never been. i mean, a lot of people have never been ready. >> the problem is you had a
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pension, you can fall back on today. today, they are under funded. who the heck knows what happens. >> right. only 3% of people rely on pensions. they are not counting it because it's not meaningful to talk to people with pensions because there's not many of them. >> scary. >> i agree. >> 6 and 9 p.m. eastern, what do you have tonight? >> talking about this study and hopefully talking about what it means for you so you can start thinking about how you can put your own retirement together so you don't -- you're not one who is worried about whether you make it or not. >> marry rich. >> stop it. pay yourself first, forget the kids. they will figure it out. >> marry, wealthy, have no children. >> i think you can do on your own. i'm working it. >> me too. >> i'm working it. >> marrying rich doesn't hurt. >> when there's no one at the altar, you have to do it on your
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own, sir. who are you marrying? investors at $200 million at a 20-year run through the firm, and pfg best and adam said the second you see the gold tape dispenser -- >> if you walked into an office with something gold plated, you know -- run; right? >> you know he was milking you. from a chicago office, things are auctioned off to pay back the victims, and jeff flock is in chicago with the gold plated tape dispenser, what the heck, jeff? >> russell's retirement is well-provided for by the federal government, actually, for the next 250 years. he's a guest of the federal pent -- penitentiary. this is his son's office, by the way. you can get a picture of him taking care of the falcon, the
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group was big on falcons, look out here. this is what the office looks like. it was a huge office, 120 employees out here, a number of stuck around to help this, but they will be soon out of work. i want to go into russell senior's office as well. this is an auction taking place online, by the way, and it's up on the screen where you can go if you'd like to. you talked about the gold plated items. yes, there's a gold plated scotch tape, regular scotch tape in there, though, a gold plated stapler and the rest. this was russell, by the way, nice ads in the "future" magazine. oh, the football. got to show you the football. mr. russell, sr., thank you for your support. amazing the support you provide people when you steal $200 million of their money. at any rate, if you want any of the items, go online, you can
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bid, and you can own a piece of chicago thievery history. >> jeff flock, the irony is, you're right, he's taken care of so to speak for the rest of his days. thank you, sir. >> nicole is standing by at the new york stock exchange to see if your money has gone positive at this hour, and, nicole, what are we doing? >> the dow is down 25 appointments, it might be three days in a row of losses. look at ebay, a lot of headlines. we have a call from counterfitzgerald upgrading them from a buy to a hold, expecting the number of users online in the market place to increase as it adds retailers and other features. in the meantime, ebay works to simplify the soliciting fee structure for the sellers and seven mying should move them along, and positive comments continue about international
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caption and the impact of the new digital wallet. that should be manageable as well. back to you. >> thank you, nicole. >> see you at the top of the hour, girl. coming up, is apple's six month long stock swoon in the final days? talk with a fund manager who is buying it, next. >> first, look at some of today's winners and losers. ♪
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>> so, no surprise, apple stocks taking a beaten, down over 30% since hitting its all time high in september. one fund manager is not backing off the stock. howard ward, gamco chief executive officer for growth equity fund and manages a growth
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equity fund, joins us now. you are a lonesome dove there. some turn, but you are steadfast on the company. >> yes, well, you know, apple stock got down to 419 on march 4th, so it's bounced about 9% since then. >> riggt. >> it's just the beginning, i think, of the broader, bigger turn in the stock. the stock is priced as if it is in the same category as a blackberry, nokia, dell, and hp. that's wrong. apple's not getting the credit for their tremendous earning power, the cash on the balance sheet, and their large market share in smart phones, which, on a global basis, grows over time. >> why do you think that is? because the expectations were so darn high? >> the stock was overheated to the upside and had a miss with the expectations in the last quarterly earnings. we had a reset in the stock price. with the stock fallen 40% from peak to trough in just a few months, it's fair to say that
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their business has not declined anywhere near as much as the stock price corrected. >> okay. but what is it? is it the 137 dollar cash they sit on that attracts you? >> multiple things. there's 4.8 times enterprise value, that is a multiple of the cash flow, very low, right down there, priced at party with a blackberry, hp, for example, and it's priced at a discount to exxon, a big commodity top of the line growth, a discount to the defense contracts like general dynamics and north. it's a cheap stock. you raise the dividend within the next months hearing news on that, we expect the dividend to go up up 50%. company generates $42 billion of free cash flow, of which about $10 billion funds the dividend. >> right. >> 50% increase, $5 billion, leaves plenty of money of free cash flow for the company to invest, make acquisitions, and make buybacks. >> what are they doing? what's the product? is it the cheap iphone in
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china? the apple tv, the watch, what is it? >> the iphone now generates 70% plus of the company's profits. it will be difficult for anything else to be close to that in order of magnitude. what it will be is a lower priced version of the iphone for the emerging markets, an area with little penetration, and that's going to drive the next leg of growth, and i think that happens this year. >> what's the risk? a lot of things; right? android windows, lower subsidies from the carriers. what do you worry about the most? >> as long as apple invades, and they have been the innovator, have not gotten credit for thatment again, i'm comfortable with apple ecosystem, the brand loyalty. the market share in smart phones is steady at 19% in the last yeer. the market share that samsung gained has been at the expense of the other providers. i'm good about apple. i don't think the apple buyer's going to go flocking to samsung any time soon. >> i just turned the house over, i'm not turning it over in.
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we're full in apple. you are a defender of tim cook, quickly. >> yeah, tim's managing the company now, and steve jobs is gone. this company's going to earn $42 billion this year, net income. number two company in the u.s. for net income is exxon, and they have 4.2 times the revenues of apple. apple has twice the free cash flow of exxon, undervalued situation, and tim will be a great ceo. >> he should hire you. do you have a price target on this stock? >> if it sold at a 20-30%, you'd see the price up over a hundred dollars a share. six to seven times, get the stock to 5 # 70 to 670, a 20% discouldn't on the s&p, almost nine times. >> howard, do you have an iphone? >> i do. >> me too, ha-ha, i had to ask. thank you. >> thank you. >> imagine if he pulled out samsung, that would not have
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been good. >> timothy gite -- geithner's house on the market. it's a fixer upper. he bought the house with his wife in 2009 for $950,000. it's on the market for $995,000. hopefully they remember to pay taxes this time because, remember, he forgot the taxes. they have the place up in winchester county, had to represent it. never sold it. >> check it out online. >> it's a fixer upper. especially after the gang got in there, they just wrecked it. >> the dow down 28 points right now, and coming up, palo alto chairman's network and ceo how they plan to win the race in cybersecurity. cheryl casone takes you through the next hour of trading. "countdown to the closing bell" is next. don't go anywhere.
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today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's mber two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gasurbines are now powering some of america's biggest cities.

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